Wednesday, April 17, 2013

Gold hits 19 month low!

Indian Gold futures hovered around it's 19 month low today, boosted by a Stronger Rupee and losses in the Global markets.

The morning session witnessed price of MCX gold down around Rs.270 at Rs.25497/10grams, while the Rupee was trading around 53.82/USD. With a stronger rupee, a strong slide in the price of yellow metal is seen.

India is world's biggest buyer of Gold, which the government considers as a dead investment piling up a record-high current account deficit, hence barring economic growth. Government has taken a lot of measures to minimize gold import in India, raising the import duty on gold by 50 percent to 6 percent this January being the latest move. However, such measures would be restricted in the future to avoid gold smuggling.

With festivals like Akshaya tritya and wedding season around, today's gold movement is certainly an invitation to Indians to invest in the so called dead investment. Gold demand is surely going to rise due to this major dip in Gold Price in India today.

Friday, April 12, 2013

Significant plunge for Sensex and Infosys today!

Indices of the Indian bourses slumping and gaining are humdrum affairs. But when the plunge happens significantly, concerns are raised. The Sensex slumped to its lowest close in seven months following Infosys q4 results beating market estimates. Revenue guidance provided by the country’s second largest IT service provider failed to meet expectations with lower-than-expected revenue. It recorded a 3.4 percent rise in quarterly profit, achieving Rs 40,352 crore against a projected Rs 40,746 crore in revenues besides not achieving the 10 percent projected target.

While Sensex provisionally plunged 300 points to 1.7 percent at 18,242.56, Infosys Ltd NSE shares fell 22.1 percent. It was only during the last two sessions that the index gained 316 points. Though consumer price inflation data and industrial production exhibited better-than-expected figures yet market sentiments were hurt. For sensex, the fall was the biggest since September 13; for Infosys, it was the biggest plunge since April 4, 2003.

Thursday, April 11, 2013

SBI NSE Stocks – Lucrative Bets

For some time banks were in the news on threats to their ratings because of bad loans and low quality of assets. SBI, India’s largest bank, is no exception. A gradual recovery is being witnessed at present, and hence, no major threat to their ratings! According to market experts the issue of non-performing loans may continue for few more months affecting the SBI NSE stocks.

SBI NSE is trending at present. According to the last 52 week price statistics, price of the stock was perched lowest at Rs. 1802.30 and highest at Rs. 2551.70.

According to the Chairman of the bank, q4 (January-March) would register better figures compared to q3 because of lower non-performing assets in addition to better recoveries in retail NPAs. A positive gaining is also expected from the bank’s agriculture portfolio.

Going by year-on-year performance, SBI NSE stocks are lucrative bets for the long term. For short term, cautiousness should be the mantra! And that's the same case with BSE Banking Index.

On the BSE Banking Index, ICICI Bank is up 3.4 pct, Yes Bank up 1.3 pct, HDFC Bank rises 0.7 pct, SBI up 0.5 pct

Tuesday, April 9, 2013

Reliance Communications & Reliance Industries to share Fibre Optic Network!

Reliance Communications Ltd - India’s second largest telecom operator is currently in the news for a deal between Reliance communications ltd and Reliance Industries ltd in which the latter would be using the fibre optic network of Reliance Communications. The deal is expected to be benefitting both the companies. The news triggered the surging of Reliance Communications Ltd. on NSE and BSE. Presently the stock is trending petite and saw a gain of 7.3%. According to the last 52-week price change dynamics, it was perched lowest at Rs.46.55 and highest at Rs. 91.85.

Moreover, a bullish feature has been created for Reliance Communication with Morgan Stanley investment bank upgrading the company’s status from ‘equal weight’ to ‘overweight’. It is the Rs 12 billion fibre optic network sharing deal that raised the stature of the company. Furthermore, the company’s fiscal earning is estimated to rise by 125 percent in 2014. Additional deals, according to Morgan Stanley, could cut the company’s net debt by 77 billion rupees. Morgan Stanley upgraded Reliance Industries to "overweight" from "underweight" earlier in March '13 where it raised it's price to 961 rupees from 798 rupees.

Also, the market sentiment for Reliance has also improved on the fact that the friction between the Ambani brothers seems loosing with the sharing of fibre optic network giving advantage to both Reliance Communications as well as Reliance Industries.